Why Target (TGT) Appeals to Shariah-Conscious Dividend Investors

Target Corporation (NYSE:TGT) is included among the 11 Best Halal Dividend Stocks to Buy Now.

A woman purchasing groceries at a Target store, with a cart full of products.

Target Corporation (NYSE:TGT)’s stock has dropped from the highs it reached during the pandemic, following a slowdown and eventual decline in its sales growth. The stock has also tumbled this year, falling by nearly 25% since the start of 2025.

That said, Target Corporation (NYSE:TGT) has consistently been a reliable choice for income-focused investors, boasting a 54-year track record of annual dividend increases, earning it a place among Dividend Kings. In June, the retailer raised its dividend by 1.8% to $1.14 per share, signaling its ongoing commitment to that streak despite current business challenges. With a dividend yield of 4.4%, as of July 18, the stock remains attractive.

Though Target Corporation (NYSE:TGT) has faced some headwinds, it continues to generate solid profits. Even if its earnings come in at the lower end of its full-year forecast, the dividend payout ratio would stay below 70%, indicating that the dividend is on solid ground for the foreseeable future.

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Disclosure: None.